Fabio M. Natalucci is a Deputy Director of the Monetary and Capital Markets Department. He is responsible for the Global Financial Stability Report that gives the IMF’s assessment of global financial stability risks.
Emerging market and developing economies need significant financing to help them reduce emissions and adapt to the effects of climate change.
Climate finance: Emerging markets and developing economies will need to collectively invest at least $1 trillion in energy infrastructure by 2030.
Central banks have taken unprecedented measures like hiking interest rates to ease financial conditions and support economic recovery as inflation hits record highs in many countries.
Central banks need to note a key lesson from the high inflation of the 1960s and 1970s – acting too slowly leads to much more painful adjustments later.
Data gaps make it difficult to assess businesses exposure to climate risks. To solve this, the IMF suggest harmonizing standards and using technology.
Demand for traditional office and retail space has dropped in the COVID-19 pandemic. This could threaten financial stability, says the IMF, but policy can help.
El Fondo Monetario Internacional ha advertido que la pandemia corre el riesgo de amplificar aún más las vulnerabilidades financieras preexistentes.
The International Monetary Fund has warned that the pandemic risks further amplifying pre-existing financial vulnerabilities.
Weak spots in the global economy could amplify the impact of a shock, threatening economic growth.
It remains difficult to forecast financial instability. But, progress is being made to improve the understanding of important links between the financial sector and the economy.
If financial conditions remain easy for too long, vulnerabilities will continue to build, and the odds of a sharp drop in economic growth at some later point will be higher.
